Valkyrie Refiles Application for Spot Bitcoin ETF with SEC
Alternative asset management firm Valkyrie has re-filed its application for a spot Bitcoin (BTC) exchange-traded fund with the U.S. Securities and Exchange Commission (SEC) after the regulator requested additional information.
The amended filing includes Coinbase Global Inc. as Valkyrie’s partner in a surveillance-sharing agreement (SSA). This agreement requires the firm hosting a Bitcoin-related market to share information about market trading activity, clearing activity, and customer identity.
The agreement between Nasdaq and Coinbase was finalized on June 30, granting Nasdaq supplemental access to data regarding spot Bitcoin trades occurring on Coinbase if needed as part of its surveillance program for the Commodity-Based Trust Shares.
Coinbase was selected due to consistently representing more than 50% of the market share of BTC/USD spot trading volume in the United States. The trust’s investment objective is to reflect the performance of the value of Bitcoin based on the CME CF Bitcoin Reference Rate – New York Variant, while mitigating risk and reducing volatility associated with stand-alone Bitcoin purchases.
Other asset management firms, including BlackRock, Fidelity, Invesco/Galaxy, WisdomTree, VanEck, and ARK, have also re-filed their spot Bitcoin ETF applications, listing Coinbase as their SSA partner. The addition of surveillance-sharing agreements is seen as a key factor in gaining SEC approval for a spot BTC ETF, as it helps mitigate fraud and market manipulation concerns.
Ophelia Snyder, co-founder and president of 21Shares, emphasized that surveillance-sharing agreements are a standard market practice. However, Coinbase’s established presence and dominance in the US market make it a significant factor in the conversation surrounding spot Bitcoin ETFs.